 |
 |
Skip |  |
 |
|
 |
June 14, 2004
To: Campus Community
From: Margaret L. Delaney, Interim Campus Provost and Executive Vice Chancellor
Re: 2004-05 Budget Update
I am pleased to report that the revised budget released by the Governor in mid-May 2004 includes no additional cuts to the University beyond those proposed in January 2004. In addition, the Governor’s revised budget includes a proposal to enter into a multi-year funding agreement with the University. This will provide funding for increases in enrollment as well as a modest adjustment to our general fund budget beginning in 2005-06. Details of the proposed compact can be found at: http://www.universityofcalifornia.edu/news/compact/welcome.html. Although the remaining 2004-05 reductions are deep, the new funding agreement should bring to a halt further deterioration of our budget.
Based on the Governor’s revised budget and the actions taken by the Regents to increase mandatory system wide fees, we are proceeding to implement permanent general campus reductions totaling approximately $14.1 million. This does not include further targeted reductions to the University’s outreach budget, the amount of which is dependent upon further legislative actions. Our reduction plan for the $14.1 million includes programmatic, central, and divisional reductions. Most of these reductions will go into effect on July 1, 2004.
We were able to reduce the more severe reductions of $17 million that we were projecting based on the January 2004 Governor’s budget because of: 1) the expectation that we will meet our budgeted enrollment targets, despite concerns that we might fall short as we returned to selectivity this year; 2) adjustments in the Governor’s May Revision budget; and 3) the Governor’s proposal for a long-term funding agreement with the University. Thus, barring something unforeseen as the legislature and the Governor take final action on the University of California’s 2004-05 budget, we are not anticipating further reductions in our state general fund budget.
Over the past four years the campus has experienced a reduction of approximately 17% in our general fund budget. Many of these reductions have been targeted to outreach programs designed to improve the academic preparedness of California students. The remaining reductions directly impact our base budgets in the academic divisions and academic support units.
It is important to note that the last few years have also been particularly difficult for our students, who have seen substantial increases in their fees. I am hopeful that financial aid, both through increases to the state’s Cal Grant program and by using a portion of the revenue from fee increases, will ease the impact for the most financially needy students.
We have used several overarching goals in constructing the revised budget reduction targets. We have sought to protect direct instruction to the maximum extent possible. In doing so, we have worked to ensure that the academic divisions will be able to offer the classes our students need to make timely progress to graduation, that we protect our ability to maintain a stable control environment, and that we provide for the safety of our faculty, staff, and students. The hiring freeze and careful management of staff attrition have allowed principal officers to maintain jobs and minimize layoffs as we implement cuts in our budget.
We recognize the extraordinary burden this has placed on staff and therefore remain committed to advancing the IT and Business Transformation Initiatives. By consolidating services, implementing new technology, and streamlining processes, these initiatives will result in significant improvements in operations and enhance the work environment.
Despite these significant challenges, we have continued to make progress on our long-term goals. A list of accomplishments over the past few years is long and very impressive. The following is just a sampling of our collective achievements:
* Based on information to date, we are expecting to welcome approximately 32 to 35 new faculty, across all divisions, to our campus next year.
* We have continued to accommodate students by providing the courses they need to make timely progress toward graduation, and our retention rates have improved. With an increase of 7.4% in applications for 2004-05, our campus has returned to being selective, offering fall 2004 admission to less than 70% of UC-eligible students.
* Three new graduate programs have been approved, our new graduate admissions system is fully operational, and graduate enrollments for 2004-05 are on target.
* Our research accomplishments continue to advance the academic reputation of the campus. Of note, contract and grant income has increased by 44% over the last five years, the University Affiliated Research Center (UARC) has realized almost $8 million in awarded research contracts, and campus faculty were successful in competing for the $17 million award to fund the Thirty Meter Telescope project.
* We have significantly increased the availability of rental and for-sale housing for faculty and staff, with the purchase of 64 units at Laureate Court. We expect to receive approval from the Regents in the next few weeks to proceed with the building of 80 new for-sale units at Ranch View Terrace. When the Ranch View Terrace project is completed, we will have more than doubled the amount of on-campus housing relative to 2003, increasing the number of units in the program from 130 to 278.
* We have undertaken a major effort to modernize many of our systems. As part of the IT and Business Transformation projects we expect to implement new electronic time and attendance, recruitment management, and e-procurement systems. Further, we have successfully brought on-line a new Academic Information System (AIS) that will allow us to use the World Wide Web to deliver many services to students and faculty, anywhere and anytime.
I am proud of what we have been able to accomplish together. I appreciate the time and effort of the many Academic Senate committee members, principal officers, faculty, and staff members who have worked diligently to address our current challenges. Your advice and counsel has been invaluable. I have confidence that we will continue to make significant progress and achieve the goals set before us. Thank you for your contributions to our continued success.
Sincerely,
Margaret L. Delaney
Interim Campus Provost and
Executive Vice Chancellor
Cc: Acting Chancellor Chemers
Maintained by:pioweb@ucsc.edu